Not upheld: claims handling delays and poor service complaint against Advantage Insurance Company Limited

Decision detail

Summary

Mr K complained that Advantage Insurance took too long to settle a motor insurance claim following an accident in August 2023 and provided poor service, leaving him without his £650 excess for over two years. The claim was complicated by initial confusion about which insurer was responsible and the discovery that the third party driver was uninsured. While Advantage acknowledged contributing to some delays and failing to keep Mr K updated, and paid £350 compensation, the ombudsman found that the majority of the two-and-a-half-year delay was caused by the third party insurer's failure to respond and factors outside Advantage's control. The ombudsman also upheld Advantage's right to recover £650 that was mistakenly paid to Mr K twice by Advantage and its solicitors.

The Ombudsman's reasoning

The ombudsman found that while Advantage contributed to some delays and poor service, the majority of the two-and-a-half-year delay was attributable to factors outside Advantage's control, including the third party insurer's failure to respond promptly and the complexity of the uninsured driver situation. The ombudsman considered the £350 compensation already paid to be reasonable and in line with similar cases. Regarding the double excess payment, the ombudsman determined it was paid in error and that Advantage was entitled to recover it, as Mr K was aware it was a mistake.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website